Reporting of Multiple Positions Including Non-Contributory Positions

May 30, 2025
Circular Letter: 200-015-25
Topic: Membership

To: All CalPERS Employers

Purpose

The purpose of this Circular Letter is to remind you of the proper way to enroll and report employees working in multiple positions, including non-contributory positions, and to inform you of how improper reporting could adversely impact you and your employees. A recent employer audit found that some employers were not compliantly reporting non-contributory positions. A non-contributory position is a position that qualifies for membership but does not require California Public Employees’ Retirement System (CalPERS) retirement contributions.

Background

All CalPERS employers are required to provide employment and payroll information to CalPERS under Government (Gov.) Code section 20221 of the Public Employees’ Retirement Law (PERL). When a member concurrently holds more than one position, CalPERS determines which position(s) will be contributory (where employer and employee contributions are submitted to CalPERS) and which will be non-contributory (where no contributions are submitted).

Overtime, including positions that CalPERS determines to be overtime positions, is non-contributory under the PERL. For school members, Gov. Code section 20635.1 defines overtime as “the aggregate service performed by an employee as a member for all school employers and in all categories of employment in excess of 40 hours of work per week, and for which monetary compensation is paid.”

For all other members, Gov. Code section 20635 defines overtime as “the aggregate service performed by an employee as a member for all employers and in all categories of employment in excess of the hours of work considered normal for employees on a full-time basis, and for which monetary compensation is paid.”

If a member concurrently renders service in two or more positions, one or more of which is full time, the service in the part-time position is considered overtime and must be reported in myCalPERS as non-contributory. If two or more positions are permanent and full time, the position with the highest pay rate must be reported in myCalPERS as contributory and the other position(s) must be reported as non-contributory.

Reporting

All employees eligible for membership must have their appointments entered into myCalPERS and must have payroll submitted with contributions for each position. Section 565.1 of Title 2 of the California Code of Regulations requires employers to submit payroll and contribution information to us for employees that qualify for membership. Once this information has been reported, we will determine which employment is considered overtime, identifying which position(s) will be contributory and which will be non-contributory.

If we determine the employment is considered overtime, a letter will be sent to the employer instructing them to reverse the overtime contributions reported for that employee within 30 days of the date of the letter. If the member contributions are not Employer Paid Member Contributions (EPMC), you will need to refund the overtime contributions back to the employee.

Payroll Adjustments

You will need to email membership_reporting@calpers.ca.gov to notify us once the reversals have been completed. We will then notify you when the position has been updated to non-contributory. Payroll must be reported with no contributions prospectively, as of the date of the overtime notification.

Impacts of Not Reporting

When all positions are not reported, both the member and the employer can be adversely impacted, including:

  • Additional contributions owed in arrears
  • Delayed or no notification to the employer regarding the appointment’s contributory status
  • Significant impacts to your employee if they unlawfully retire without separating from all CalPERS-covered employment, including the employee’s eligibility to retire and overpayment of retirement benefits
  • The member being placed incorrectly into the Public Employees’ Pension Reform Act (PEPRA) or classic membership, resulting in payroll adjustments and financial impacts to the employer and member

For these reasons and more, it is imperative that your agency reports and maintains all eligible positions in myCalPERS to ensure your agency and employees receive the most accurate CalPERS benefits.

Your assistance and compliance with the above information will continue to provide your employees with a smooth and efficient retirement process.

Resources

Review the myCalPERS Payroll Adjustments (PDF, 2.9 MB) student guide for information to assist you with reporting payroll adjustments for contributory and non-contributory positions. Refer to the Public Agency & Schools Reference Guide (PDF, 3 MB) or the State Employer Reference Guide (PDF, 2.2 MB) for further guidance regarding reporting employment to CalPERS.

Questions

If you have questions, call our CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377888-225-7377).

Brad Hanson, Chief
Employer Account Management Division